Keeping up with the Joneses might be doing consumers more harm than good, according to a new study.

In research carried out by CreditExpert, it was revealed that about a third (34 per cent) of consumers state they are spending beyond their means in attempt to maintain a certain image when among their peers. Findings from the firm also showed that 31 per cent of Britons say that they act differently when around people who have more wealth. Meanwhile, some five per cent were indicated as feeling either "nervous" or "jealous" when with people of a greater financial standing. As such, it was suggested that such consumers are more likely to talk about themselves and show off what possessions they have in an attempt to impress other people.

Just over one in ten respondents (11 per cent) were indicated as buying the latest electronic gadgets, such as BlackBerrys and iPods, to maintain their profile. Purchasing expensive suits and eating in exclusive restaurants were also shown to be ways in which people attempt to appear to be well-off. Furthermore, flashy watches, jewellery and designer haircuts were features that consumers believe give an air of wealth.

However, in a constant attempt to keep up with those around them, Britons may find that they soon begin to develop financial pressures. This could lead them to experiencing difficulties in making repayments on mortgages, personal loans and other spending commitments.

Overall, it was revealed that men are most likely to spend beyond their means to help improve their image. Just under a fifth of males were shown to be going into the red as a result of the car that they have bought.

Commenting on the figures, Jim Hodgkins, managing director of CreditExpert, said: "The desire to keep up with friends isn't new and there is always a temptation to use credit to do so. But using credit to fund a lifestyle you can't really afford can lead to huge financial problems and if you don't keep tight control of your spending and how much you're borrowing, you can easily find you can't afford the payments and start to fall behind with them. If that happens, you'll soon make yourself less financially attractive to lenders and find that you can't get access to the best possible credit deals."

Mr Hodgkins went on to report that those consumers who are looking to keep track of their money management should cast a regular eye over their credit report. Checking such a financial document was particularly advised as it was pointed out that money lenders are taking steps to tighten up access to borrowing products in the wake of the credit crunch.

For those consumers who are concerned about their ability to manage their money taking out a debt consolidation loan might prove to be of assistance. In getting a loan for the purposes of debt consolidation, borrowers might find that they are able to merge numerous financial constraints into a single low-cost monthly repayment. Speaking recently, Sean Gardner, chief executive of MoneyExpert, claimed that there are still a number of "competitive" personal loans available for Britons despite moves by money lenders to increase their rates over recent months. He pointed out that such products are likely to be particularly available to those with a good credit history.